Annuities
A buyer wants to fund an annuity gradually over working life and take income at retirement. Which design fits?
Answer and explanation
Answer: A. A flexible premium deferred annuity accepts payments over time and defers income to a later date, which matches funding from earnings and drawing at retirement. The single premium designs take one payment, and an immediate annuity begins paying at once.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, deferred annuities and premium payment options
More annuities questions
- During which annuity phase does the contract value grow before scheduled income payments begin?
- How are accumulation units converted in a variable annuity when the contract owner chooses to annuitize?
- How does a fixed indexed annuity credit interest?
- In an annuity contract, whose life measures the income payments?
- The index referenced by a fixed indexed annuity falls sharply in a year. What ordinarily happens to the contract value?
- What benchmark rate is used in variable annuity payout calculations to determine whether monthly annuity payment amounts increase or decrease?
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